On Oct. 31, Converted Organics, Inc. (OTC:COIND) announced its plan to spin-off TerraSphere Systems and a reverse split which took effect on Nov. 8. Yesterday, almost a quarter of the post-split shares changed hands.
The volume at the end of the session was nearly 5.8 million shares; the closing price – $0.034, up 37.1%.
When the 1 for 10 reverse split was announced, and later when it took effect, instead of sending the price up it brought it further down, but now COIND is going up to compensate for the split.[BANNER]
The huge volume from yesterday was probably due to the short positions generated during COIND’s spectacular drop.
As of the time of this writing COIND is another 28.82% up and the volume this far is 1.1 million. However, it’s not clear just how much of the short positions to cover are left, so there’s no guarantee a further short squeeze will be possible.
Even trying to compensate for the split, the price of COIND is not necessarily going ten times higher than the price at the time of the split. The company’s latest 10-Q doesn’t give anything to get traders or shareholders excited about.
